Sonae Sierra posts EUR 13m profit in H1

International shopping centre specialist Sonae Sierra said on Thursday it posted net profit of over EUR 13 mln in the first half of 2011, compared to EUR 648,000 in the same period in 2010.

The group's portfolio showed a positive performance during the period, with occupancy levels rising by 0.3% to 96.5% at end-June and tenant sales across its global portfolio increasing by 0.9%. In the first six months of the year, the company spun off its Brazilian arm and sold two shopping centres in Spain. These sales, in line with the company's strategy to recycle capital, resulted in a 6% drop in direct income from investments.

Earlier this year Sonae Sierra initiated construction on a new 28,000-m² shopping centre in Solingen, Germany, which represents an investment of EUR 120 mln. The scheme will be realised via a 50/50 partnership with The Netherlands' MAB Development.

Currently, Sonae Sierra has 49 shopping centres in operation, 28 of which are located outside Portugal, namely in Spain (9), Italy (4), Greece (1), Germany (3), Romania (1) and Brazil (10). Four shopping centres are under construction, representing a total investment of about EUR 400 mln.